contingent capital

One of the key events in the reinsurance cycle is currently underway in Germany. The Baden-Baden Reinsurance Symposium is another event which presents an opportunity for reinsurers, brokers and cedants to meet and discuss pricing, rates and availability of coverage for the forthcoming January renewals. One of the issues raised which is worthy of some […]

An initiative established under the Dodd-Frank Act by the U.S. Treasury to look at systemic risks and financial stability, the Financial Stability Oversight Council (FSOC), has just completed a study of contingent capital solutions to see if they are tools which could be leveraged to ward off financial crisis. The FSOC, which is charged with […]

French reinsurer SCOR have announced that they have extended the cover available to them through their natural catastrophe contingent capital facility which they launched back in 2010. They have elected to extend the innovative contingent capital solution, which acts as an event-driven guaranteed equity line, by an additional €75m taking the amount of cover SCOR’s […]

The Farmers Exchanges, the third largest insurer of personal auto and homeowners insurance in the U.S., has announced the renewal of a $500m contingent capital facility designed to give them access to capital in the event of major catastrophe loss. Initially launched in 2007, the contingent capital facility gives the Farmers Exchange the ability to […]

The Inter-American Development Bank has been discussing new disaster risk financing instruments to assist countries in Latin America and the Caribbean to recover after major natural disaster or weather events. A disaster fund has been discussed and is one of the options on the table. Other instruments which have been discussed are contingent capital type […]

Contingent capital is an alternative form of capital or financing which can be triggered and made available under certain, specific pre-defined circumstances. It’s becoming a flexible way for companies to arrange a source of financing which is made available at precisely the times they need it. In the case of re/insurers contingent capital can come […]

Ratings agency Moody’s has published an article discussing the announcement from French reinsurer SCOR about the triggering of their catastrophe linked contingent capital facility. Just over a week ago SCOR announced that the facility had successfully been triggered and would pay them €75m due to their rising catastrophe losses.

Contingent capital, which provides a source of capital under certain circumstances and triggers, is becoming a more popular way to provide a predictable source of financing at exactly the times that a company requires it. The other day we wrote about French reinsurer SCOR’s contingent capital facility being triggered due to their increasing Q1 natural […]

French reinsurer SCOR has announced that the net losses attributable to catastrophes during Q1 2011 have reached a sufficiently high level to trigger a payment under the terms of their natural catastrophe contingent capital facility (which we first wrote about last September). As a result SCOR have issued a €75m drawdown notice under the contingent […]

Société Générale Corporate & Investment Banking, a division of the French investment bank, has announced the launch of a contingent capital facility for insurers and reinsurers.